HDFC Life Insurance Company Limited

rs,

dra‐Kurla Complex, Bandra (East), Mumbai‐ 400 051 Listing Department BSE Limited Sir PJ Towers, Dalal Street, Fort, Mumbai – 400 001 NSE Symbol: HDFCLIFE BSE Security Code: 540777 Dear S

16.5%

Code: 540777 NSE Code: HDFCLIFE Strong delivery across all key metrics – Private market share: 16.5%, VNB growth: 37%, Individual WRP growth: 27%  Higher than industry growth enables market share

37%

Code: HDFCLIFE Strong delivery across all key metrics – Private market share: 16.5%, VNB growth: 37%, Individual WRP growth: 27%  Higher than industry growth enables market share expansion by 70 bp

27%

very across all key metrics – Private market share: 16.5%, VNB growth: 37%, Individual WRP growth: 27%  Higher than industry growth enables market share expansion by 70 bps  Robust YoY growth: Prot

70 bps

37%, Individual WRP growth: 27%  Higher than industry growth enables market share expansion by 70 bps  Robust YoY growth: Protection APE up by about 20%, Annuity APE grew by 59%  VNB margin of 27.6

20%

ry growth enables market share expansion by 70 bps  Robust YoY growth: Protection APE up by about 20%, Annuity APE grew by 59%  VNB margin of 27.6%, achieved margin neutrality post-merger, well ahead

59%

share expansion by 70 bps  Robust YoY growth: Protection APE up by about 20%, Annuity APE grew by 59%  VNB margin of 27.6%, achieved margin neutrality post-merger, well ahead of target  Operating R

27.6%

bps  Robust YoY growth: Protection APE up by about 20%, Annuity APE grew by 59%  VNB margin of 27.6%, achieved margin neutrality post-merger, well ahead of target  Operating ROEV at 19.7%; Indian Em

19.7%

margin of 27.6%, achieved margin neutrality post-merger, well ahead of target  Operating ROEV at 19.7%; Indian Embedded value at Rs 39,527 crore  13% growth in PAT to Rs 1,360 crore; with back book gr

Rs 39,527 crore

n neutrality post-merger, well ahead of target  Operating ROEV at 19.7%; Indian Embedded value at Rs 39,527 crore  13% growth in PAT to Rs 1,360 crore; with back book growing by a robust 27% offset by new busi

13%

erger, well ahead of target  Operating ROEV at 19.7%; Indian Embedded value at Rs 39,527 crore  13% growth in PAT to Rs 1,360 crore; with back book growing by a robust 27% offset by new business st

Rs 1,360 crore

target  Operating ROEV at 19.7%; Indian Embedded value at Rs 39,527 crore  13% growth in PAT to Rs 1,360 crore; with back book growing by a robust 27% offset by new business strain  Proposed final dividend

“Margin neutrality, after considering the acquired business, was achieved well ahead of target.”

“Although Company believes that such forward‐looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met.”

“7 FY20 17 FY23 3 Year CAGR 3 Year CAGR ▪ HDFC Pension continues to be the largest PFM (Pension Fund ▪ Registered 10% YoY growth in GWP in FY 22-23, at $17.22 million Manager) in Retail and Corporate NPS AUM segment ▪ Fastest growing PFM (Pension Fund Manager) under the NPS architecture (YoY growth of ~60% in AUM) ▪ Market share grew from 36.9% in Mar’22 to 41.2% in Mar’23 amongst all PFMs- doubled over the course of the year ▪ 15 lakh+ subscriber base.”

“Current year numbers are on a merged basis, hence prior year is not comparable Improving VNB trajectory for both existing and acquired businesses Rs bn 9.8 0.1 0.9 0.3 0.5 36.7 26.8 FY22 Impact of higher APE Change in assumptions New Business Profile 1 Fixed cost 1 absorption Project Inspire FY23* NBM% 27.4% 0.0% 0.1% 0.7% -0.2% -0.4% 27.6% 39 39 Reflects the impact of difference in mix of segment/distribution channel/tenure/age/sum assured multiple etc 1.”

“RC is set equal to the internal target level of capital equal to 170% of the factor-based regulatory solvency requirements, less the funds for future appropriations (“FFA”) in the participating funds and the book value of subordinated debt, to the extent allowed by the regulations to meet the RC.”

“The Company does not intend to register any securities in the United States.”

“Although Company believes that such forward‐looking statements are based on reasonable assumptions, it can give no assurance that your expectations will be met.”

Below is the summary of our standalone results

1

Notes

1

Note

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Below is the summary of our standalone results

Commenting on the full year performance for FY23, Ms. Vibha Padalkar, MD & CEO said “As you may be aware, the RBI has permitted HDFC Bank or HDFC Ltd to increase their shareholding in HDFC Life to more than 50% prior to the effective date, thus clearing any uncertainty around HDFC Bank’s eventual shareholding in us. We look forward to collaborating with our parent to be, towards creating value for all stakeholders. We closed the year with a strong growth of 27% in individual WRP with a market share of 16.5% and 10.8% in the private and overall sector respectively, clocking expansion of 40 and 70 basis points respectively. We continue to grow faster than the private industry and be ranked amongst the top 3 life insurers across individual and group businesses. In terms of Individual WRP, we have outpaced the private industry over multiple timeframes including, in the past 3, 5 and 7 years, thereby consistently demonstrating growth leadership. There has been an increase in protection shar

Notes

1. 2. Percentages may not add up due to rounding off effect * Current year numbers are on a merged basis, hence prior years are not comparable Limited pay/regular premium persistency Definitions and abbreviations  Annualized Premium Equivalent (APE) - The sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups 2  Assets under Management (AUM) - The total value of Shareholders’ & Policyholders’ investments managed by the insurance company  Embedded Value Operating Profit (EVOP) - Embedded Value Operating Profit (“EVOP”) is a measure of the increase in the EV during any given period, excluding the impact on EV due to external factors like changes in economic variables and shareholder-related actions like capital injection or dividend pay-outs  First year premium - Premiums due in the first policy year of regular premiums received during the financial year. For example, for a monthly mode policy sold in March 2023, the first monthly in

Note

1. Asset Liability Management Council 2. The above list of committees is illustrative and not exhaustive Additional governance through Internal, Concurrent and Statutory auditors g r o w t h P r o f i t a b e l m x i d i s t r i b u t i o n i D v e r s i f i e d f i r s t C u s t o m e r g o v e r n a n c e t & m a n a g e m e n R i s k l A n a y t i c s i d g i t a l & T e c h n o o g y , l Financial risk management framework Natural hedges Product design & mix monitoring ▪ Protection and longevity businesses ▪ Unit linked and non par savings products ▪ Broad-basing of counter-parties for FRAs ▪ Prudent assumptions and pricing approach ▪ Return of premium annuity products (>95% of annuity); Average age at entry ~58 years ▪ Deferred as % of total annuity business < 30% with average deferment period <4 yrs ▪ Regular monitoring of interest rates and business mix ALM approach Managing Risk Residual strategy ▪ Target cash flow matching for non par savings plus group protection portfolio to